• Gap acquires Intermix
In a move to expand into higher-end fashion Gap Inc. acquired Intermix, a multi-brand specialty retailer of luxury and contemporary women’s apparel and accessories, based in New York.
Gap agreed to pay $130 million for Intermix, a chain of 32 boutiques in the U.S. and Canada, according to executive Art Peck, who said Gap has long looked at Intermix for inspiration and insights into new trends.
“INTERMIX has a distinctive position in this growing market with clear competitive advantage,” said Glenn Murphy, chairman and CEO of Gap Inc. “Their record of merchandising with a keen eye towards mixing multiple designer labels, complemented with exclusive product, is appealing to their loyal customers.”
The acquisition will give Gap access to popular high-end brands such as Herve Leger, Yves Saint Laurent and Rag & Bone.
“We’re thrilled to have found a partner that has the global scale and infrastructure required to support our vision for growth,” said Khajak Keledjian, co-founder of INTERMIX. “Gap Inc. shares many of our entrepreneurial roots, passion for innovation and customer experience. Together, we’ll continue to shape the future of retail by offering the most exciting fashion trends with the finest designers in the world.”
INTERMIX will continue to operate under the leadership of Keledjian, in the role of chief creative officer, and Adrienne Lazarus, president, both of whom will continue to be based in New York. They will report to Peck, president of Gap Inc.’s Growth, Innovation & Digital (GID) division.
The cash deal was completed on Dec. 31, 2012.
• Macy's to close six stores and open 9 others
Macy’s Inc. announced plans to close six stores in early spring 2013.
The units marked for closure include the 99,000-square-foot Bloomingdale’s Home Store at Fashion Show Mall in Las Vegas and six Macy’s stores around the country.
Most of the stores slated to close are located in downtown shopping districts, including an 80,000-square-foot store in Honolulu; a 362,000-square-foot store in St. Paul, Minn.; a 791,000-square-foot store in Houston; and a 75,000-square-foot store in Belmont, Mass.
In addition the retailer will close its 158,000-square-foot store at the Paseo Colorado mixed-use project in Pasadena, Calif.
The retailer will also consolidate its two separate stores in Ridgedale Center in Minnetonka, Minn., into the one store in early 2014. The remaining smaller building at Ridgedale Center will be closed and acquired by the mall’s owner General Growth Properties for redevelopment.
Meanwhile, nine new and replacement Macy’s and Bloomingdale’s stores are currently planned and/or under construction. The chain also announced plans to open a new, 25,000-square-foot Bloomingdale’s Outlet store in fall 2013 at Fashion Outlets Chicago, in Rosemont, Ill.
“We remain committed to operating a successful and growing stores business as part of our company’s omnichannel strategy for serving customers wherever, whenever and however they prefer to shop,” said Karen M. Hoguet, CFO, in a press release.
“This leads us to open new stores where we see the opportunity to fill gaps in important markets, as well as to make the tough decision to selectively close underperforming stores that no longer meet our performance requirements or where leases are not being renewed,” said said.
Once the dust settles, Macy’s will operate 798 stores including 37 Bloomingdale’s stores and 13 Bloomingdale’s Outlet stores.